A.M. Best Upgrades and Removes From Under Review Ratings of Merrill Lynch Life

Business Wire, Jan 11, 2008

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength ratings (FSR) to A (Superior) from A (Excellent) and the issuer credit ratings (ICR) to "aa-" from "a" of Merrill Lynch Life Insurance Company (Little Rock, AR) and ML Life Insurance Company of New York (New York, NY) (together known as Merrill Lynch Life). The ratings have been removed from under review with the FSRs being assigned a stable outlook and the ICRs a positive outlook.

These rating actions follow AEGON N.V.'s (AEGON) (Netherlands) (NYSE: AEG) recent announcement of the closure of AEGON USA, Inc.'s acquisition of Merrill Lynch Life for $1.25 billion in cash. The ratings for Merrill Lynch Life reflect A.M. Best's viewpoint that the acquisition of Merrill Lynch Life's operations represent a firm commitment to variable annuities as a core line of business for AEGON and that the acquisition will expand the breadth of AEGON's distribution by virtue of its access to Merrill Lynch & Co., Inc.'s (New York) (NYSE: MER) large stockbroker channel. Additionally, A.M. Best believes that Merrill Lynch Life will be a key contributor to the group's earnings and that its capitalization will be managed in a manner consistent with the primary life/health member companies of AEGON's U.S. operations (AEGON USA).

A.M. Best will monitor the progress of the integration of Merrill Lynch Life into AEGON USA to ensure the achievement of anticipated revenue and expense synergies. The nature of any potential future rating actions on Merrill Lynch Life will be dependent upon both the timing and the degree, which these anticipated synergies are realized. The positive outlook reflects AEGON's considerable acquisition experience, suggesting the likelihood of a successful integration.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.